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Short Term Target
Posted by :
GuestAnyone.. What is the short term target of Ultratech .. Say for about a month or two ?...
Buy UltraTech Cement
Posted by :
insight95in
UltraTech Cement
Buy
Price: Rs729 Target Price (Sep 2010): Rs870
Creating a Cement Behemoth
Board of UltraTech and Samruddhi Cement (Grasim’s cement division)
approved the merger ratio as 4 shares of UltraTech for every 7 shares
of Samruddhi (Ratio 1.75). While ratio is marginally unfavorable to
shareholders of UltraTech (our est 2.19), however clarity for creation
of a cement behemoth in UltraTech will lead to re-rating of the stock in
the medium term. UltraTech becomes India’s largest cement company
and tenth largest by size globally.
* Merger process: Grasim demerged the cement division into a separate
company (Samruddhi) w.e.f. 1 October 2009. Shareholders of Grasim to
receive one equity share of Samruddhi (FV Rs5) for each equity share held
in Grasim, which will take their shareholding in Samruddhi to 35% and
Grasim will own balance 65% stake. It is proposed to merge Samruddhi
with UltraTech to create a pure play cement company. UltraTech will issue
149.5 mn shares to acquire cement assets of Grasim, eventually leading to
Grasim holding at c.60.3%, Samruddhi/Grasim shareholders at c.19.1%
and UltraTech minority shareholders at c.20.6% in UltraTech (merged
entity, refer Exhibit 2)
* Creating a cement behemoth: In our opinion, the merger process is a
step towards creating a cement behemoth in UltraTech with cement (grey)
capacity of 48.8 mtpa, 0.6 mtpa of white cement capacity and 11.8 mcm of
RMC capacity. UltraTech becomes India’s largest cement company with
presence across all regions and tenth largest by size globally.
* Valuation re-rating will follow: UltraTech is currently trading at
EV/tonne of c.US$88 for FY11E, which is discount to replacement cost of
US$100/tonne. With diversified presence across regions and return ratios
above the cost of capital, we believe that UltraTech will be re-rated to
EV/tonne of US$110 and will be preferred by investors seeking exposure to
cement sector.
* Maintain Buy on UltraTech with target price of Rs870: We value
UltraTech grey cement (48.8 mtpa) at EV/tonne of US$110, white cement
(0.6 mtpa) at EV/tonne of US$300 and RMC (11.8 mn cu mtr) at Rs500
mn/mn cu mtr to arrive at our target price of Rs870, implying an upside of
20%. (Refer Exhibit 6 for valuations).
* Grasim fair value at Rs2,672: We value Grasim’s cement investment
(through 60.3% stake in UltraTech) at 15% holding company discount, VSF
business and other liquid investments to arrive at SOTP based fair value of
Rs2,672/share, implying an upside of 17%. (Refer Exhibit 7 for SOTP based
valuations)....
Merger with Samrudhi approved
Posted by :
cmet
Samruddhi Cement, a wholly-owned subsidiary of Grasim Industries, is all set to merge with UltraTech Cement, Grasim’s other subsidiary, on July 1, 2010. The merger, to be completed by September, will result in the world’s 10th largest cement maker.Shareholders will get 4 shares of UltraTech for every 7 shares of Samruddhi
In a meeting today, UltraTech’s board approved the merger of Samruddhi with itself. Samruddhi’s shareholders will get four shares of UltraTech of Rs 10 face value for every seven shares of Samruddhi of Rs 5 face value each. UltraTech will issue 149.5 million new shares, thereby increasing its equity capital to Rs 274.20 crore.
When the merget becomes effective, Grasim will hold a 60.3 per cent stake in UltraTech’s expanded equity and 39.7 per cent will be held directly by the other shareholders of UltraTech and Samruddhi. On completion of the merger, Samruddhi shareholders will get direct participation in the largest domestic cement maker. The proposed merger will be subject to the approvals of the High Court of Bombay and the High Court of Gujarat.
The merged entity will have a capacity of 48.8 million tonnes per annum, with 22 plants. The captive power generation capacity will be 504 Mw and the number of readymix concrete plants will be 68, with an overall capacity of 11.7 million cubic meters. With Samruddhi’s assets, UltraTech will add the speciality products of white cement and wallcare putty in its product mix, apart from its existing grey cement.
Kumar Mangalam Birla, chairman of the Aditya Birla Group, said: “The merger will achieve the groups’s objective of consolidating its cement business into a single entity, thereby creating a platform that will help in pursuing aggressive growth going forward.”
The cement business of Grasim is currently under a demerger process, with all its assets being shifted to Samruddhi, and the proposed merger of Samruddhi with Ultratech will take effect only upon completion of the demerger process and listing of Samruddhi.
Adesh Gupta, whole time director and CFO of Grasim, said: “Grasim will retain a strategic and controlling interest in UltraTech, while providing UltraTech flexibility for future fund raising.”
“The merger represents an inflexion point for UltraTech,” said K C Birla, CFO of UltraTech. He added that the combined profitability and cash flows of the resultant entity would provide impetus to the company’s growth.
...
NSE Announcements on UltraTechCement
Posted by : MMB MessengerUltratech Cement Limited has informed the Exchange that a meeting of the Board of Directors ("Board") of UltraTech Cement Limited (the "Company") was held on November 15, 2009, at which meeting the Board of the Company considered the recommendation of the Committee of Directors ("Committee") on the proposal received from Samruddhi Cement Limited ("Samruddhi") in relation to a potential consolidation of Samruddhi and the Company. The Board accepted the recommendation of the Committee and approved the amalgamation of Samruddhi into the Company in terms of a scheme of amalgamation under sections 391-394 of the Companies Act, 1956 ( the "Scheme"). The Board also approved the share exchange ratio of 4 (four) equity share(s) in the Company of Rs.10/- each credited as fully paid-up for every 7(Seven) equity shares of Rs.5/- each credited as fully paid-up held by a member in Samruddhi. The share exchange ratio is based upon the valuation report submitted by M/s. Bansi S. Mehta & Co. Chartered Accountants and fairness of the same has been confirmed by M/s UBS Securities India Private Limited. Further the Company has submitted to the exchange a copy of the press release dated November 15, 2009, titled "Samruddhi Cement Limited to merge with UltraTech Creates 10th Largest Cement Company in the World" shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements). ...
BSE Announcements on UltraTechCement
Posted by : MMB Messenger
Ultratech Cement Ltd has informed BSE that the Board of Directors of the Company at its meeting held on November 15, 2009, inter alia, has considered the recommendation of the Committee of Directors ("Committee") on the proposal received from Samruddhi Cement Ltd. ("Samruddhi") in relation to a potential consolidation of Samruddhi and the Company.
The Board accepted the recommendation of the Committee and approved the amalgamation of Samruddhi into the Company in terms of a scheme of amalgamation under sections 391 - 394 of the Companies Act, 1956 (the "Scheme"). The Board also approved the share exchange ratio of 4 (four) equity share(s) in the Company of Rs. 10/- each credited as fully paid-up for every 7 (seven) equity shares of Rs. 5/- each credited as fully paid-up held by a member in Samruddhi. The share exchange ratio is based upon the valuation report submitted by M/s. Bansi S. Mehta & Co. Chartered Accountants and fairness of the same has been confirmed by M/s. UBS Securities India Pvt. Ltd.
In this regard, the Company has issued a Press Release dated November 15, 2009 titled "Samruddhi Cement Limited to merge with UltraTech; Creates 10th Largest Cement Company in the World"...
buy good news for shareholders target 850/- soon..........
Posted by : jindalpowerbuy buy buy sab baate batane ki nahi hoti..........
With the pickup in Cement demand for the projects being done for Commonwealth Games, North based cement companies are going to have a phenomenal year.
Buy Shree Cement, Ultratech and Binani Cement, JK Lakshmi for adding some multi-baggers to your portfolio.
...
BSE Announcements on UltraTechCement
Posted by : MMB Messenger
Ultratech Cement Ltd has informed BSE that a meeting of its Board of Directors of the Company will be held on November 15, 2009, inter alia, to consider the recommendation of the Committee of Directors appointed at the meeting of the Board of Directors of the
Company held on October 06, 2009....
BSE Announcements on UltraTechCement
Posted by : MMB MessengerUltratech Cement Ltd has submitted to BSE the information relating to the Companys Non Convertible Debentures (NCDs) for the half year ended September 30, 2009....
buy 1000/- within one months.............
Posted by : jindalpowerbuy buy buy its sudden jump............
NSE Announcements on UltraTechCement
Posted by : MMB MessengerUltratech Cement Limited has submitted to the Exchange a copy of the Performance Update for the half year ended September 30, 2009 and a copy of Abstract under section 302 of the Companies Act, 1956 for re-appointment of Mr. S. Misra as Managing Director, revision in his remuneration w.e.f. July 01, 2009 and terms and conditions of his re-appointment. The copies of the same shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements). ...
Buy UltraTech Cement
Posted by : VarnerShould be a good trading share at the current situation....
Buy UltraTech Cement
Posted by : tapjosh
Good stock for long term......
If can not keep for 2-3 years then sell it now and reenter at the level of 700-725....
Buy UltraTech Cement
Posted by : madan
punters are giving target 950+.
it would be worth averaging. but clear picture would emerge only after grasim demerger and ratio etc....
Buy UltraTech Cement
Posted by : jindalpoweri have bought 1200shares@835/- exit kare ya average kare?,please suggest....
